Supply Demand

Definition ∞ Supply Demand refers to the fundamental economic principle that governs the price of goods and services. Supply represents the quantity of a good or service available, while demand signifies the quantity consumers are willing and able to purchase at a given price. The interaction between these two forces determines market equilibrium.
Context ∞ The interplay of Supply Demand is a primary driver of price action in cryptocurrency markets, with factors like token issuance schedules and adoption rates significantly influencing both sides of this equation. Current discussions often revolve around the impact of Bitcoin halving events on supply and the growing institutional interest affecting demand. Future market dynamics will likely be shaped by the evolving balance between the fixed supply of certain digital assets and their increasing utility.